H2 2025 M&A Outlook

As we move into the second half of 2025, the lower middle market M&A landscape is showing signs of cautious optimism. Deal volume remains steady, though not at the frothy levels of 2021–2022. Strategic buyers and private equity firms continue to pursue high-quality targets, especially in recession-resilient sectors like healthcare, B2B services, and tech-enabled business models.

Valuations have stabilized after last year’s correction, with well-run companies still commanding strong multiples—particularly those with recurring revenue and diversified customer bases. However, buyers are more selective and diligence is deeper, as interest rates remain elevated and capital is more disciplined. 

We’re also seeing an uptick in pre-sale planning activity, with business owners increasingly engaging advisors earlier to improve readiness and maximize exit outcomes. This trend reflects a growing awareness that premium valuations require operational excellence and strong financial reporting. 

In short, while macroeconomic uncertainty still lingers, well-prepared sellers with clear value propositions are finding an active buyer pool. For business owners considering a future sale, now is the time to assess, prepare, and position for a successful transaction in 2026 and beyond.

About Infinity Capital Partners

Infinity Capital Partners is an Oklahoma City-based middle-market investment bank offering a broad range of advisory services to private companies and financial sponsors across a variety of industries. Infinity works closely with owner-operators, shareholders, founders, and management teams of private companies to provide tailored services including M&A advisory, debt and equity placements, recapitalizations, and strategic advisory.